president wants that. >> i think there is a lapd minutis -- lastminute deal. >> deal or no deal, i don't think it matters this is just a dog and pony show, the economy is in trouble. lou: thank you very much. appreciate it. on that happy note. >> thank you, lou. lou: what the bleep just happened. thank you. for us that is it good night from new york. neil: influential tea partier jim demint is leaving senate captain, and john boehner removing tea party party from all leadership posts first indicated it. stick a fork in him, the republican party as we know it is dead. i am neil cavuto, allow me to be

so blunt to say, what else can you say about a light taken out of the party, republicans who 1 proudly school their tax drowned over decades, seeding that and then some over weeks, only real debate among the grand old party is how much to hike taxes, not if. i did not know they lost their backbone. starting 800 billion in tax hikes to match the president, shouldn't surprise anyone whether we doubled that to $1.6 trillion, that will become the new starts point for the president. new york times and front page story praising john boehner's grip to the party here, appears to be towing to the middle. no matter, they don't matter. argue aming over size of tax

hikes, argue than size of spending cuts do not matter. this republican met morris is to a light -- metta mofa sis to a lighter shade of blue. controlled by forces do you not know. and laughed at by a mainstream media you don't want to know, that is why jim demint is leaving this poing this popsicl. in a few minutes, senator demint himself, and much more, but could it be enough to make rick sick? as in rick santorum. he came closes to any republican to dislodging mitt romney as presidential nominee here, had all of 28-cents in his campaign war shift. do you find any of this

troubling? >> i do. for republicans to go out and concede on the revenue side. does washington need more revenue? yeah it does, looking at overall percentage of money of revenues that come in to federal government, than what has been average since world war ii, we're below that the argument should be, yeah, we need more revenue, but the question is, how do republicans historically, how do we argue, for more revenue? growth. we need more growth, if we have more growth, highest revenues we had in history of the -- since world war ii was 21 or 22% of gdp, what happened? tech boom, huge capital gains and start ups, and that is how we got revenue, it was not by raising taxes that is an argument we have with principle made and have been correct in making it.

to now say, well, you know, president won and we have to concede that point. i'm not saying there can't be tax reform. but that should be an ending point not a starting point. neil: does it bother you that mitt romney's running mate, budget committee chief paul ryan is going along with this deal. >> it is his budget. he is the -- >> he has been boxed in a corner. >> governing is a tricky thing, being in washington right now, i always believed, you know when i was in washington, called lame duck sessions turkey season, because just about every turkey you could imagine will fry to try to fly at this point. i mentioned we're about 16% of

gdp right now compared to 18.5 where we normally are, we're close to 25%, talk about fiscal stimulus? we have been pumping fiscal stimulus out the wazoo for a long time. we have a problem in washington. a president who is addicted to spending, a congress that is addicted to spending. and we need to have an intervention. and that instervention that to come from people in washington who understand the problem. and they have to say no to all of this. unfortunately, the one place that can happen is the house, and it is not happening. neil: one thing -- you and i might disagree -- but i think that elections do have consequences, the american people since seem to support they want to stick it to the rich, i do not agree with that i think that hoops that republicans are going through to find an alternative to raising raters on clinton era rates. it could get so ca complicated d

get worse. when you talk mortgages and charities and everything else. why not raise rates on rich, fight for a simp her tax system that -- simpler tax system that might provide lower taxes down the road. >> well we need to demand concessions on spending. neil: we're not getting them. >> that is the point, so putting up taxes is not a way of getting concessions in the future. neil: from the get go they put up that 800 billion figure. >> a starting point, the problem is that, as you know, not only will the democrats want more in taxes, but they have in place, with this horrible deal that was done a year and a half ago with debt sealing that gives deal -- there is a deal in place.

and it recalls that fiscal cliff, but the deal of made a year and a half ago, the republicans, democrats and president signed off on this, allowing tax increases to go back in place. and they signed on to half a trillion in cuts, in domestic programs and half a trillion in defense, understand what this is as a conservative, defense is 16% of the budget. other 84% gets half a trillion, defense getting half a trillion. the democrats are welcoming this to happen. >> the guy who ran second to mitt romney, many argue now with -- i think this is -- republicans are running with tail between their legs, and they are a lighter blue. >> they are referred to as cheap

democrats. neil: you are persona nongratta now. or party we knew is gone. >> i'm hoping that is not the case. i'm hoping we'll have new members come in. and you know, we -- just saw it, i got involved in not a fiscal thing but it had to do with a u.n. treaty that the left's to s to hoist on u.s. that thing was going to pass, we got involved, an organization that i run, patriot voices, we stirred up the pot, got people to pay attention. neil: you are a force, you are a very commanding force it would be in upper tier of perspective presidential candidate. >> i appreciate, that but point is, i do not say that to pat our organization on the back. neilback.

>> i want voices of america to be heard. neil: you would be taken more seriously this time, than last time, you couldn't get to nickelodeon last time. >> we had a tough time get something recognition early in the campaign. neil: but once you burst through thank you instant street cred. >> like i said, conservatives will be heard over the next couple years, everyone said that tea party is dead, you even said that republican party is dead, there are a lot of folks who understand the critical times we're in. and this fiscal cliff, not what is happening in january but long-term imagine problems. neil: you can't win being a lighter verdict of them. version of them. >> even during the campaign, i am not being critical of our candidates but they talked about

how dire the circumstances are with our economy deficits but they put forward a plan that did not change entitlement for 10 years, if we're in a dire point, how can you say that -- they -- we did not make -- we made the case there is a problem. but they look add solution, they said it can't be too big of a problem if you are waiting 10 years to solve it. neil: rick santorum, always a prez eapleasure senator. hardest working senator. >> hard work does payoff, it does. neil: just a few moments, senator jim demint on why he is taking a sprint. is the tea party's loudest voice in the senate leaving the tea party high and dry? he is hereafter this

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>> one small step for man. one giant leap for mankind. neil: that started it all, do you know we're approaching 40th anniversary of the last man to walk to the moon, 12 years, a dozen men. heroes who did not know the meaning the words, can't, won't. don't, no pointing fingers. among them the second man to walk on the moon. there is a lot of gossip buzz how it ended up that neil armstrong of the the first man. >> every eva was done by junior person, senior person had more responsibilities, more requirements there was an uncertainty. neil: was it going to be you,

was it going to be armstrong? >> there is a lot of discussion about the commander leading his troop somewhere. the commander is a symbolic person, and neil was closer to the door, but i don't tell when you decision really -- >> a labor of love, everyone at fox put this together, remarkable. my favorite project, 16 u 16 pls years at fox to ju juxtapose ito washington. this speaks to the time, we could do anything at all, we live is sunday night, 9:00 p.m. eastern time, fox news channel, you will get back to reality, back to greatness. you know, a lot of people say, neil, why are you doing this astronaut special, why were you

chosen? i love this stuff, as a kid i wanted be to an astronaut, they took me to cape kennedy, and i looked and i realized, hey, i won't fit in the capsule, so i became a financial anchor. i tell you, it is in our dna to be great, these guys prove it. if for no other reason, grab your kids, your grand kids, sunday night, think about what we were, in speaks volumes about what we still could be. meanwhile, back here on earth. top corporate brass meeting with president obama's aides, no surprise, they are cozying up to the president. ed, you are rude when you go to the white house, you speak your

-ind, and you are not intimidated. i have interviewed a lot of presidents myself, i am always intimidated. it -- i think what happens. with the ceos, they are shell shocked even for these guys, like the guys in chrysler building they go in there they don't know what to do. >> i'm a very literal person when i get an invite, they tell me they want me to speak my mind, i do, maybe i should be more little bit ily correct. but they are -- politically correct. they are good people are they are great leaders,. neil: has anyone declined? >> the ones that can figure out a raireally good excuse to not ,

don't go, it is a terrible distraction, their pr people are coaching them, and coaching them. they don't want to say something that will damage the shareholders, so they play the game. neil: you know, a lot of these guys, have said, and women, have been saying, mr. president, we think a deal should be struck, and revenues should be part. we don't like some of them said, i'm paraphrasing, we donnt like this dispractic dispractice pori weighted. >> he is doing this for optics, inviting them in say, go back and sell the american people on the idea, he does not care what they have to say, he has made up his mind. the republicans and democrats going at it, tongue, claw and hatch it, he is leader into got almost 55% of the vote, he will

do what he wants, he has the republicans in a box, high knows it -- >> you would think he won a landslide, yes he won but does not mean caving on every issue. >> the man will be in office 4 more years, you can't get him out of it. neil: true. >> he does not have to run for reelect, he gets to do whatever he wants, he has all the power. neil: i would love to see you at the white house chewing people out. thank you very much. all right you heard big news about jim demint tea party favorite sensation, he is leaving u.s. senate. why the heck? he is coming here to tell us why, jim demint here, next.

neil: geffen fact i was getting this coming from cape canaveral last night, i hear u.s. jobless claims dropped, everything is looks good, i realize it was a third straight weekly decline but, wait a minute. what are they celebrating, remember that they have not fallen to level that prevailed before hurricane sandy. what is more, there are few if any indications they will get that that neck of the woods any time soon. big layoffs at citigroup, what is that 11,000? lingering fallout from thousands of jobs lost at hostess. all i'm saying is, when you look

at this news, and it still interpreted as good, only make me thing, that mainstream media is still pushing for the president or democrats. well, the guy got reelected. you don't have to pretend any more, it upsets me, tye young, what do you make of this. >> neil thank you, we have wall street laying people off, main street laying people off, market flat lining up and down one week to the next. just like it was before it crashed in 2008, unemployment number 7 .9% that is very high, real unemployment maybe is almost 17%, and the washington post tells us that ignore it because of hurricane sandy, that is ridiculous. my clients are business owners, they tell me that the cost of living and cost of doing business is going up, the availability of business loans

is nonexistence, they are battening down the hatches. that is the reality. neil: whatever the reality, you hear a lot that things are certainly better than they were. i am not so sure we go back to something -- on this whole you know, budget brink nonsense, but saying that i am curious about the role of media here. it ignored the developmented and settled for better numbers being good numbers, but they are still doing it i thought you know, you put your, check is aside -- ethics aside during the campaign, you might has well go back to being a journalist after the campaign but they are not. >> they are not. we have still about 8% unemployment. and gallup said that the number will be over 8%, we'll see if it is. with unemployment benefits going

out. we'll have an estimated 3.3 million people slip into poverty next year, if those long-term unemployment benefits are not extended. the problem is there are no jobs for these people, this is like the job chasing the truck, they caught the truck. but now what are they going to do with it. i am not sure why they would show this optimism, they should be playing this down. neil: thank you very much. jim demint is leaving u.s. senate, will he be able to prevent the president's tax hikes before he does? demint here, next. where's your? uh... whew. [ male announcer ] break from the holiday stress. ship fedex express by december 22nd for christmas delivery. you know how painful artburn can be.

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neil: he is a very influential senator and a tea party rock star. one of the most infl influential figures of conservative

movement, he is leaves u.s. senate to go to the heritage foundation, jim demint to tell us why, why? >> it was apparent we need to do more to convince the american people that conservative principles will make their life better. i can think of no better platform than heritage foundation, to take our message to the american people and connection research, policy ideas, with real people, and real solutions, and so, i feel like i've changed senate and improved things to a degree. but this is an opportunity i can't turn town to advance a consider conservative cause. neil: i hhve enormous respect for heritage foundation but they are not the senate is it is one of move exclusive clubs. >> a lot of what i had to do, as

you know as a minority member of u.s. senate is stop bad legislation as often as we can, and talk about what is wrong with president's policies, democrat policies, we need to do as conservatives and be on offense talking to american people about what is working. and as a partisan elect the official in senate, there are things that i can do. but i can do more to take that positive message around the country and build coalitions with governors and organization, to prove to people to show them, that these ideas of make their lives better. i don't think that we've done a good enough job of doing that, this is an urgent time, i feel we can't wait another few years, i first intended to make politics my career, i have limit my term, this is just a good opportunity to elevate my gain. neil: did this is anything to do

with you becoming a skunk at your own party's picnic, a lot of tea party's frustrated on what appears to be a hatchetting of tea party types in the house that tapper tarp that brought, -- tea party that brought your party to majority in the house. >> sense -- the senate is different, now i'm in senate with pat tumi and marco rubio, and soon to be ted cruz. neil: you are in a bigger minority now. you are not feeding the beast i'm throwing at you. there is a riff, that everyone is, you saw this page, that everyone is going along with job boehner, a few grumbling folks

but they are all onboard with the tax hike thing. and that just the way it and, and we got to cave, and what say you? >> the government does not need any more money, the country needs less government. neil: what do you think with what john boehner has come up with? that was his opening offer. >> it makes no sense to negotiate with ours when a president has not put a serious offer on the table. we need to remind americans, we do not need to take more money from the economy and give it to incomincompetent politicians and bureaucrats, we're not talking about revenue problem, we have doubled our spending but they' more money, and they want republicans to vote to pay for obama's welfare state, we did not vote for it. neil: you would not -- you would

not support a hike in taxes in anyway shape or form? >> no but we will get more revenue if we reform our tax code and a pro-growth way, 3/10 of 1% will generate more revenue than what president obama is taxing about what he says tax the rich, his proposal does not add a drop in the buckie on the our problem. this is not a plan or a solution, this is a political trophy, to the left. and republicans should not go along with it. neil: you know, senator, a pleasure knowing you, i always gauge viewer interest in a particular personalty, or senator or congressman from number of e-mails i get, it is not a quid pro quo but this is a good barometer, i get a ton you on every time, whether, fox news or fox business, that leads me to believe, a lot of folks really like you, it can't just

be your family e-mailing me, which makes me think there is a presidential candidate in the making, what do you say? >> i told ed folder of heritage foundation 4 years okay when people told me to run for president is only president i want to be is president of heritage foundation, this is the group that can turn our country. neil: you would rather be president of the he heritage foundation than president of u.s. >> i don't think you will see a conservative as president of the u.s. until we do a better job of convincing the people of america we that is what works. neil: what happened? how did conservatives screw it up. rick santorum said, we were at conservative, we stopped being conservative. >> no, what we did is we

entrusted conservative movement to the republican party, they have not been reliable partners, we need too develop conservative idea, showcase everywhere they are working at state level, and invite republicans and independence, and libertarians and democrats to embrace those policies, and i believe if we do your job right, they will not get elected unless they run on a conservative platform. instead of on the outside looking in, as conservatives, and to political process, we hope that the candidates for was on the will look at conservative movement and come to us for the ideas that will win elections. neil: all right, we'll watch, senator, a pleasure we wish you well. >> thank you, neil. neil: senator jim demint, soon to be former senator jim demint, running powerful heritage foundation. >> he is famous for saying, you're fired, now the president wants -- now the donald wants

the president to hir hire this y as an ambassador?

neil: donald trum obama supporter. neil: maybe not. the donald, just tweeting this. i am happy to hear that president obama is considering giving an ambassadorship, a winner, and really smart. former ambassador to united nations john bolton said that money could payoff for her, this is just weird. on so many levels if she is ambassador.

donald trump supporting it. that is not a shocker but just, says and the speaks of time how weird the ambassadorships are doled out. >> major campaign contributors have gotten ambassadorships for years. neil: on both sides. >> obama administration has put more political ambassadors in than prior republican administrations. now is that good or bad? it is good. the political ambassadors have a direct connection with the president, in countries where they are acredited, if they say, this is what the president wants that is believable. and their loyalty is to the president not state department. and they care a lot in my experience about making sure that president's policies are carriee out. and third, and look -- >> would see? >> no anna wintour from a cord

of wood, but i do know she knows something about business,. neil: you support this? >> i don't know her. >> i think if it was france it would be perfect. with the style. i don't see a problem. >> i don't but i think that in advocating american business against european ambassadors who spend a consider an poke of theiportionof their time on it d someone in business themselves can be effective. neil: no doubt. we were talking about. joe kennedy, -- john kennedy's father got the ambassadorship to england to get off of fdr's back for helping him. so, i know how these are plumb assignmented and handed out like candy. but should and we have a better system for this? the same way we do say, we put

cabinet officials through the grill, ambassadorships go through easily, except yours. >> it must have been because of my large contribution to george w. bush campaign. neil: you know what i mean. should there be some standards? >> well i think there are. i think that political appointees in both parties get a bad wrap, there are failures, they are the one that get the attention, but having people around the world who are sensitive to the president who put them there and can speak with authority when they have to deliver a tough message to the country they are located it is a -- >> big difference. i don't know what they do? maybe when president visits, you could stay at the ambassador's

residents. >> you are raising an important point that has nothing to do with any weather the ambassador is a political appointty. the way we do recognition will change. neil: they write notes. >> the role can vary depending on the person and post, a lot is simple reputation, which i think going to parties and ann win the wintour will be great at that. neil: thank you, ambassador. he had the gravitas. it should work into this. >> imwith you. neil: right, gravitas. he is waiting. from one royal endorsement to the next, kate middleton's baby, not even born bet, and already a cash king or queen, companies are racing to slap their name on this infant.

rumors are that the princess is personally requesting a cavuto -- slowdown, slowdown.

neil: the royal baby to be is getting courted ump just days after kate middleton announced she is expecting companies duking it out to get royalty flushed with cash, spending -- sending gifts to the palace hoping that kate likes them. so her fans will follow suit. >> i think this is understandable, every company wants to cash in on this, any time that kate middleton wears a dress of any description they

fly off of the shelves, what makes me laugh she has been sent strollers, really? do they think that princess kate will be wheeling little whoever it down the street in a stroller in full view. neil: she might. they are the royal couple of the people. >> than any other royal couple, i like them. and good luck to them. it happens. neil: caroline, you areal. >> the allsnooty about this, whr problem. >> i am the kill joy, there is no benefit in turning babies into billboards it is crass. neil: the babies don't know. >> but kate middleton knows. the fact her private life is so invaded she can't have morning sickness without the world knowing it, they know about morning sickness than th the --

having a child, than they know about syria. neil: come on, take a chill pill. >> but, neil you do something. right, you say interesting things, we're talking about a celebrity culture, a fascination, a u.s. fascination with a monarchy we rejected in 1776. neil: i don't know they do a lot of good, jonathan, i she attacked -- >> my inner core, i am cut to the core. what makes me laugh there may be double the money on offer, we do not know whether she is having a baby or two babies, that particular -- >> what happens then? >> well, whoever pops out first, gets to be -- >> that's nice. >> third in line after charles and william, it was always the first born boy. they changed the rules this time, so if it a girl, a girl, and if a girl, and twins, and girl pops out first, girl gets

to be queen before the boy get to be king. neil: what did the doctor is a sexist and he says i'll take the boy first. >> the queen one imagines is all in favor of m female suck. neil: that whole monarchy thing is passy, what do you think. >> yes, i mean, get bored with it a lot of the time, but it bridges in a vast amount of tourist dollars, they always say 4ism dollars that come to british people from the royal family, are better than tax dollars we give to the royal family there say financial reason. and what is reason for getting rid of them, not like they have power, they don't make us all eat cake oo anything 92 caroline, of course, fancy pants does, we have royalty here, we

have kennedy family, and bush family,y and -- royalty without the title. every country has it. but having said that, what -- what is wrong with then you know, cavalier business types then attaching their name or their you know, very symbols with the royal family? this is a home run? >> well, it is using a baby to make money. in a crass way. i guess i'm attacking the whole notion of celebrity culture that we live in. where you know it distractions us from more important issue like poverty and human trafficking. neil: what about those celebrities that are addressing it like angelina jolie, they are looking at hunger and they look at violence, they do good work. >> some are, and i know you do

as well, if terms of philanthropy. neil: but i'm not beautiful. >> we're fascinated with pretty people, and why, what does that say about that. neil: it -- don't get me going. >> a lot of women objectivey you as well, i assume. neil: your point is the whole thing is a mistake, it just keeps this whole thing going, that is a hervetion. >eh . >> it is a distraction from important issues, if we took resources that we put into buying celebrity magazines, and following these peoples whose lives are meaningless when it comes to making a contribution, maybe we would help people up in a subway instead of standing by and being voyeuristic. >> thank you very much. >> you're welcome, anything i can do to help the world,. neil: caroline does not speak for all of us, i'm kidding,

great having you both. when we come back, i hear a lot of people say in this country, we our heroes are gone, they lift us, but after talking with mereo heroes, while taping my big astronaut special coming up sunday, i could tell you, i could tell you, they are wrong. >> i am convinced that the space program the come back. >> the country needs to have something to look forward to, to look up to, to be proud of. >> what can we do in 10,000 years, look how far we went in 70 years, my grand father in a farm in michigan, watched first guy walk on the room. in her lifetime, i would like to see next generation leave footprints like we left on the moon, i hope it happens. at's th! now we need a little bit more... [ male announcer ] atat humana, we understand the value of quality time and personal attention.

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>> how many times have you heard we cannot do this?

it is impossible. settle for this. no way. impossible. blah, blah, blah. we live in an age it cannot be done. but picture this. you are in a rocket 200,000 miles from earth and it explodes. it looks like you are never getting back. you will die. you have to come out with a plan not to die. but you shall me to be told you thought you would die. but it was worth the effort to try not to. think of being jim lovell from apollo 13 afford to was special the 40th anniversary of the last lunar landing and the one flight that did not make it. but outshone many people for how they handled the crisis.

>> the crew of apollo 13. >> 56 hours into the flight the finished broadcast showing how comfortably they lived and worked. >> we will get back to a pleasant evening. >> nine minutes later oxygen tank number two blew up causing the number one tank to fail. >> houston we have a problem. forever linked to commander jim lovell. >> when the explosion occurred why not apollo 12414? i could not believe what was happening. then i said it is me. it is now. what i n